Central African mining company Katanga Mining Limited had begun a review of its business, including operations and expenses, in light of the challenging environment for commodities, Glencore said on Monday.
A similar review was under way at Mopani Copper Mines in Zambia, the London-, Hong Kong- and Johannesburg-listed global commodities mining and marketing company said. The review would include the suspension of production at Katanga and Mopani for 18 months up until the completion of the expansionary and upgrade of the ore leach at Katanga and the new shafts and concentrator at Mopani, which would provide a material reduction in overall operating costs at both operations.
The suspension of operations would remove 400 000 t of copper cathode from the market. Once complete, the programmes were expected to reduce net direct cash (C1) costs at Katanga to $1.65/lb and at Mopani to $1.70/lb from more than $2.50/lb currently. The 181 000-employee Glencore, headed by CEO Ivan Glasenberg, said it would continue to fund the expansionary and upgrade projects at both operations, adding that Mutanda Mining continued to perform well, producing above nameplate capacity at a C1 cost of $1.33/lb.
Glencore, whose industrial and marketing activities are supported by a global network of 90-plus offices in 50-plus countries, is a member of the Voluntary Principles on Security and Human Rights, the International Council on Mining and Metals and the Extractive Industries Transparency Initiative.